RATIONALE OF THE SYSTEM OF INDICATORS FOR COMPLEX EVALUATION OF A COMPANY’S FINANCIAL CONDITION VIA CORRELATION ANALYSIS

Abstract. A comprehensive assessment of a company’s financial condition and its performance in terms of its economic potential requires a developed system of analytical indicators. At the same time, an interpretation of key trends of the company’s development, based on the generalization of arrays of analytical data, becomes more complicated. While justifying the approaches to work out the problem outlined, the authors have advanced an algorithm for conducting and evaluating the results of correlation analysis of financial indicators, formed on the basis financial reporting of the economic entity. The methodical framework advocates measuring the quantitative and qualitative parametersof the correlation relationships between the calculated coefficients. The authors have argued that a thematic study of tightness of correlation characteristics allows to mathematically substantiate the composition of indicators whose dynamics is determined by the impact of homogeneous economic factors. Elimination of duplication in the composition of financial indicators underlies the formation of an individual system of indicators for an integrated assessment of the company’s financial conditionKeywords: financial ratios, financial indicators, financial condition, financial analysis, integrated assessment,correlation analysis